Market Wrap: Stocks End 5th Day Lower; Oil Prices Slip More
By Caroline Valetkevitch
NEW YORK -- U.S. stocks ended lower for a fifth session Tuesday as data showed slower growth in the U.S. service sector and oil prices fell further.
The S&P 500's losing streak was its longest in about 13 months, but the index ended off the day's lows, having fallen as much as 1.4 percent earlier, at one point breaking below the 2,000 level for the first time since Dec. 17.
Data released Tuesday pointed to slowing growth in the fourth quarter. The pace of expansion in services moderated in December and new orders for manufactured goods fell for a fourth consecutive month in November.
The S&P 500 is down 4.2 percent for the last five sessions, with the Dow and S&P 500 suffering on Monday their biggest drops since early October.
%VIRTUAL-pullquote-It seems to be about oil prices. The big debate out there is what does it mean and is there this massive global economic slowdown.%Among the day's biggest drags, the S&P energy sector fell 1.3 percent as oil prices slid further on mounting worries about a supply glut. U.S. crude settled at $47.93 a barrel, down 4.2 percent on the day. Shares of energy names tumbled, including Southwestern Energy (SWN), down 5 percent at $24.71, as brokerages continued to cut price targets.
"It seems to be about oil prices. The big debate out there is what does it mean and is there this massive global economic slowdown," said Eric Kuby, chief investment officer at North Star Investment Management in Chicago.
"But besides that, economic news has been modestly disappointing," he said.
The Dow Jones industrial average (^DJI) fell 130.01 points, or 0.74 percent, to 17,371.64, the Standard & Poor's 500 index (^GPSC) lost 17.97 points, or 0.89 percent, to 2,002.61 and the Nasdaq composite (^IXIC) dropped 59.84 points, or 1.29 percent, to 4,592.74.
An election in Greece, which may trigger its exit from the eurozone, is about three weeks away, increasing the difficulty for the European Central Bank to move towards quantitative easing as it attempts to stabilize the region's economy.
Among gainers, shares of AOL (AOL) rose 3.4 percent to $46.25 a day after a report that Verizon Communications (VZ) approached AOL about a potential acquisition or joint venture. (Editor's note: AOL is the publisher of this website.)
About 8.3 billion shares changed hands on U.S. exchanges, above the 5.5 billion average for the last five sessions, according to BATS Global Markets.
Declining issues outnumbered advancing ones on the NYSE by 2,076 to 1,011, for a 2.05-to-1 ratio; on the Nasdaq, 2,117 issues fell and 657 advanced for a 3.22-to-1 ratio favoring decliners.
The S&P 500 posted 14 new 52-week highs and 15 new lows; the Nasdaq Composite recorded 38 new highs and 73 new lows.
What to watch Wednesday:
The Mortgage Bankers Association reports weekly mortgage applications at 7 a.m. Eastern time.
Automatic Data Processing (ADP) and Moody's Analytics release the ADP National Employment Report for December at 8:15 a.m.
The Commerce Department releases international trade data for November at 10 a.m.
The Federal Reserve releases minutes from its December interest rate meeting at 2 p.m.
These selected companies are scheduled to release quarterly financial results:
